Charity registration number 1072038 Company registration number 03589593 (England and Wales) HOPE NOW LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 HOPE NOW LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr S Sweeney Mr M Scott Mrs J Hon DrBRRead (Appointed 10 July 2024) Secretary Mr M Scott Chief executive officer Mr J Barnes Charity number 1072038 Company number 03589593 Registered office Malvern Centre Malvern Road Soulhampton Hampshire S016 6PY Independent examlner Darnells Chartered Accountants Quay Housè Quay Road Newton Abbot Devon TQ12 2BU Bankers Lloyds Bank plc 19-21 High Street Southampton Hampshire S014 2SE CCLA Investrnent Management Limited COIF Chartty Funds 80 Cheapside London EC2V 6DZ Sollcltors MacDonald Oates LLP Knockhundred Row Midhurst West Sussex GU29 9DQ HOPE NOW LIMITED CONTENTS Page Trustees, report Independent examiner's report Statement of financial activities Balance sheet Statement of cash flows Notes to the financial statements 10-20 HOPE NOW LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees are pleased to present their annual directors. report together with the financial statements of the charity for the year ended 31 December 2023 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply Vlith the Charities Ad 2011. the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Objectives and activities To apply th@ charity's funds for thÈ promotion and advaneÉmÈnt of The Evangelical Christisn Faith. both in thÈ UK and abroad, through making grants to and supporting projects of insts'tutions with similar objects. In pursuance of these objects the charity.. Presents and disseminates the teachings of Jesus Christ, promoting understanding of the Evangelical Christian Faith and viewpoint and fostering Evangelical spirit- Establishes infomiation and research centres devoted to the study and presentation of Evangelical Christian thought and catering for the religious and educational needs of Evangelical Christian Communities in the UK and abroad., Promotes, supports and organises scholarships. conferences. seminars. study tours and similar projects; Establishes and supports the establishment of charitable organisations for voluntary servi￿, based on evangelistic crusades and personal visitations for the promotion of the Gospel of Jesus Christ., Publishes and promotes books, journals, periodicals, maqazines, newspapers and other literature; Provides, endows and fumishes and fits out buildings with all ne￿SSary furniture and other equipment required for the above objects. The charity carries out these objects by: Preaching in churches. schools. colleges. prisons. on radiorfv and to other organisations to which invitations are received,. Funding and equipping churches, orphanages, Bible Study centres" Partial funding of Kompas Park., Funding pre-independence homes for disadvantaged teenagers. Funding and developing foster homes for homeless. orphaned or abused children., Funding of healthcare initiatives. The charity has established its grant making policy to achieve its objects for the public benefit to promote and advance the Evangelical Christian Faith in the UK and abroad by fundraising in the UK for projects such as orphanages, pre-independence and foster homes. Bible Study Gentres, etc. The beneficiaries of the grant making programme are ultimately orphaned. homeless or abused children and teenagers, and disadvantaged families. In addition the charity funds outreach projects for prison ministry in countries such as Ukraine where under the communist regime Christians were sent to prison for their faith. The charity helps to build churches and chapels in the prisons. The charity has links vrith institutions in Ukraine and Sri-Lanka wtth similar objects, as well as links with other Hope Now Charities through which grants are made. The Charity's main activities and those who it tries to help are described below. The focus of the charity's activities therefore continued to be advancing the Evangelical Christian faith both in the UK and abroad, by raising funds for local organisations providing welfare. education and Christian ministry. Projects funded included funding orphanages, undertaking prison ministry. providing funds for education and sponsoring both individuals and families of limited means in Ukraine and Sri Lanka. Supporting summer camps and breaks for disadvantaged children and widows and widowers has been reinstated following the Russian invasion of Ukraine and support to refugees continues to be made as well. Who used and beneffted from the charity's services? The charity's objects and funding limit the activities to projects in a few countries, predominantly Ukraine and to a lesser extent Sri-Lanka. The number of people helped by the charity is estimated at 20,000. HOPE NOW LIMITED TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The charity has no specific criteria to measure success although funds raised and grants paid are reviewed by the trustees to ensure that the charity is meeting it's objectives. The trustees have paid due regard to the Charity Commission's general guidance on public benefit when reviewing the charity'5 aims and objectives and in planning the future activities the charity should undertake. Achievements and performance Ukraine The work in Ukraine has continued in the followng areas", I lealth Local hospitals have been supported with the supply of equipment. these include the Childrens Regional Hospital. Bums Unit Hospital and the TB Hospital. We have also been able to undertake several dental healthcare projects. Children Orphans - Hopc Now supports S cottage homes with 9 children. many of whom have been rescued from dire circumstances of abuse and homelessness. The total number of children in these families, Swindon House and Flat 33. and a few individual children is 15. Donors in the UK sponsor these. The parents meet once a month to support one another as they Share their particular challenges. Pre-lndependence homes - 6 girls enjoy living at one flat. where they are given three years higher education in trade schools or universities. All have benefited from th• professional holp of our child care officer, Mrs Lari88a Vovk, who also teaches homemaking and finance management. The second flat is being used for refugees. Orphanages Hope Now continues to provide financial and practical help to several orphanages in the Cherkassy Region. along with supporting the Cherkassy Rescue Shelter. Handicapped - Hope Now supports the work of 2t¥J Baptist Church reaching out to the deaf and disabled. Ludmila Sidenko arranges camps and ministers to the deaf. and Valery Petrochenko organised camps for the disabled. and had contacts in local hospitals and an outreach to Sunday School 16. In August 2023 Valery Petrochenko passed away. His daughter and late wife are Tunning the ministry now. Prisons Anatoli Peripilitsa is sponsored for Prison outreach works to ex-prisoners and their families. This is now on hold due to prison closure and Anatoli Peripilitsa's absen￿ from the Ukraine. Evangelism Jonathan Budgell looks after this ministy. As much as funds will allow. Hope Now has been working in partnership with The Baptist Bishop strategically planting and supporting smaller churches and district town churches. Hope Now also supports the outreach initiats've put into place by Anastasia Vovk and Jonathan Budgell to minister in outlying villages. Kompas Pa Miss Svieta Kravchenlo is now in her sixlh year of leadership. Camps are held throughout the summer for children, widows and disabled. In 2023 a limtted number of camps vRre reinstated for churches. refugees and local children. Bible School In 2023, 20 students took advantage of the expert tuition provided by local ministers. The training now takes place in local churches as Apha House has refugees stsying. This group finished their course in May 2024. HOPE NOW LIMITED TRUSTEES. REPORT {CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Students Hope Now has provided financial assistance to over 200 students over the past 20 years, who otherwise would not have been able to attend university. Each year a new intake means new sponsors have to be found but, thankfully, there are still those who are prepared to take on sometimes commitments of thousands of pounds to ensure that these young people have a future. 15 students are currently supported. Others have moved abroad because of the war. Schools Following links made wth the Zozulenka Music Group and School Number 20. Hope Now is invited to take visitors in to teach English. This was not possible for 2020121 due to COVID-19 and for 2022 and 2023 due to the war. Aid boxes The charity organises sending donated items of clothing and essentials to the Ukraine for use by those in need and in particular refugees and is grateful to the volunteers who assisted with this. The items sent have been donations from individuals and church organisations. The Chief Executive Officer in usual circumstances visits the Ukraine on a regular basis to evaluate and appraise the effectiveness of the use of funds and to build and maintain closer working relationships. During the COVID- 19 pandemic this was not possible and is now prohibited by the war. Contact, however, continues via Zoom and email. Financial review The Charity is reliant on voluntary income, donations and legacies, which totalled £511,363 (2022 £814,134). The decrease reflects exceptional income received in 2022 of £250,350 for an Ukrainian Appeal set up following the Russian invasion. The principal funding sources of the charity are individuals and church groups. Grants amounting to £465,519 {2022 £333,850) were paid to charities with similar objects from the available realised income of £544,431 (2022- £825,160). The total value of the charity's unrestricted funds has increased from £699,191 at 31 De￿rnber 2022 to £741,715 at 31 December 2023. The amount of the restricted funds was £228,310 at 31 December 2023 which was a decrease from £323,691 at 31 December 2022. The total funds have decreased from £1,022,822 at 31 December 2022 10 £970,025 at 31 December 2023. The trustees consider the charitys overall position to be satisfactory. t is the policy of the charity that unrestricted funds vthich have not been designated for a specific use of £60,000 should be maintained. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in ftsnding. they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been exceeded throughout the year and the funds have been ring fenced in a high interest earning bank account. The additional reserves held al the start of the year reflect funds being accumulated to fund capital projects such as the rebuilding of orphanages once fighting in the Ukraine ceases. At 31 December 2023 the amount of the Free Reserves at the charity's disposal was £560,882 (2022 - £515,779) see note 15 to the financial statements. Aside from retaining an amount in reserves as per the Reserves policy above, the charity's funds are historically to be spent in the short term with few funds available for long term investment. Funds being retained for capital projects to be carried out once fighting has ended in the Ukraine are cU￿entlY invested in a high interest eaming bank account. The propety held in the balance sheet provides both a pla￿ from which the charity can operate and the surplus space is rented at commercial rates. HOPE NOW LIMITED TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Risk management: Critical Incident Planning has been undertaken and is reviewed annually at the Board's January Planning day. The trustees have assessed the major risks to which the charity is exposed. and are satisfied that systems are in pla￿ to mitigate exposure to the major risks. Plans for the future The charity plans to continue the activities outlined above in the forthcoming years, subject to satisfactory fundraising and a resolution to the Russian invasion of Ukraine. Vvhen hostilities end, assistance for the rebuilding of orphanages, hospitals and other buildings Compatible with the charity's aims will be offered. Additionally, camps have been reinstated at Kompas Park so children from the Cherkassy area can enjoy holidays there as well camps for elderly and refugees. There will be continued monitoring to ensure that funds reach the intended destinats.ons and if ne￿SSary assistance will be sought from the British Embassy. The invasion has made rt very difficult for the chartty to operate as previously, and has substantially hampered it's charitable work in Ukraine. On 29April 2024 Mr Jon Bames took the position of CEO designate and took over from Mr Jon Budgell on his retirement on 30 June 2024. Structure, governance and management Governing document: The charity's objects and regulations are r•gulatèd by the Memorandum of AssoGiation dated 29 Junc 1998. Under that memorandum the charity is constituted as a company limited by guarantee, having no share capital. The trustees, who are also the directors for the purpose of company law. and who seprfed during the year and up to the date of signature of the financial statement5 were- Mr J Barnes (Resigned 25 March 2024) Mr S Sweeney MrAJ Camm Mr M Scott Mrs J Hon DrBRRead (Resigned 30 August 2023) (Appointed 10 July 2024) Recruitment and appointment of trustees: Under the requirements of the Articles of Association, trustees are elected for a period of three years after which they must be re-eleGted at the next Annual General Meeting. Trustees annually review the period of service and the Chair and Vice Chair hold the period of office for one year only, following which the Board decide on re- election. The board of trustees regularly discusses the recruitment of new twstees for their experience, empathy and knowledge of the charity, and to keep the skills and composition of the trustee body as a whole and succession planning under review. Trustee induction and training= Most trustees are already famillar with the work of the charity. having been encouraged to read literature prepared regularly by the charity and attend events throughout the year. New trustees are invited and encouraged to attend these events and are placed on a probationary period to familiarise themselves with the charity and the context in which it operates. The induction process consists of an initial meeting wth the trustees, followed by a series of short meetings with the CEO and other executives to disGuss the grant making process and the powers and responsibilities of the trustee board. Addltlonally copies of the most recent newsletter are distributed to all new trustees along viith the Memorandum and Articles of Association and a copy of the latest financial statements. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed by the trustees from the charity are set out in note 8 to the financial statements. HOPE NOW LIMITED TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The truslees. usual practice of reviewing the previous yearfs achievements against the objectives set for that year was undertaken in January and a new set of objectives for 2023 was established maintaining Hope Nows core values and encouraging all involved at every level in a team effort for all activities. The Crits'cal Incident Planning document was reviewed and updated with several action points established or created. The Charily Commissions. guide to Good Govemance was reviewed and practice benchmarked against those guidelines. Organisational structure= The charity is administered by a board of directors who are also tTUStees. The day to day running of the charity is delegated to a Chief Executive OffI￿r who reports to the Trustees. The trustees aim to meet at least bi-monthty and met eight time5 in the year. Relationship with wider ne￿ork. The charity has close links with local Hope Now charities in Ukraine and the USA and Kompas Park. a Ukrainian non-governmental organisation. The Chief Executive Officer is invited to sit on the Ukrainian board as a non- voting member. Hope Now Limited has no executive control over the running of the other Hope Now charities., they share a common charitable purpose with the UK charity raising funds for projects overseen by the other Hope Now charities. Hope Now Limited takes an active role in ensuring that funds raised are used for the purposes for which they were raised in order to fulfil an expectats'on of due diligence on the appropriate use of funds sent overseas. The charity has also developed links and has provided funds to Christian charities operating in Sri Lanka. In South Africa Transfonnation Pollsmoor has previously taken over the ministry, previously funded by the charity, at Pollsmoor Prison. The trustees, report was approved by the Board of Trustees. Mr S Sweeney Trustee HOPE NOW LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HOPE NOW LIMITED I report to the trustees on my examination of the financial statements of Hope Now Limited (the charity) for the year ended 31 December 2023. Responsibilities and basis of report As the trustees of the charity land also its directors for the purposes of company law) you are re5pon5ible for the preparalion of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charty are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of the Gharity's financial statements carried oul urider section 145 of the Charitie5 Act 2011 (the 2011 Act)- In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5}(b) of the 2011 ACL Independent examinerfs statement Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confim that l am qualified to undertake the examination because l am a member of the Institute of Chartered Accountants in England and Wales. which is one of the listed bodies. I have completed my examination. I confimi that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect. accounting records were not kgpt in rpspe.ct of the charity as rÈquired by section 386 of the 2006 Act. or the finanaal statements do not accord with those records" or the financial statements do not comply with the accounting requirements of section 396 of the 2008 Act olher than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination., or the financial statements have not been prepared in accordance with the methods and principles of the Statement of Re￿Mfflended Practice for accounting and reporting by Gharitie5 applicable to charltles preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection wrth the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Mr J Milden FCCA Darnèlls Chartered Accountants Quay House Quay Road Newton Abbot Devon TQ12 2BU HOPE NOW LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlcted Restrlcted funds funds 2023 2023 Totsl Unrestrfcted RestTlcted funds funds 2022 2022 Total 2023 2022 Notes Income from". Donations and legacies Investments 281.722 33,068 229.641 511,363 33.068 410.477 11,026 403,657 814,134 11,026 Total income 314,790 229.641 544,431 421,503 403.657 825,160 Expendlture on: Raising funds Charitable activities 36,258 235,408 36,258 561.030 35.460 154.648 35,460 421,684 325.622 267.036 Total expenditure 271,666 325.622 597.288 190,108 267,036 457,144 Net incomel(expenditure} 43.124 (95.981) {52,857) 231,395 136,621 368,016 Transfers belween funds 11 (600) 600 (1,732) 1,732 Net movement in funds 42.524 (95.381) (52,857) 229,663 138.353 368,016 Reconciliation of funds: Fund balances at 1 January 2023 699,191 323.691 1,022,882 469,528 185,338 654,866 Fund balances at 31 December 2023 741.715 228.310 970,025 699,191 323,691 1,022,882 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. HOPE NOW LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed assets Tangible assets 12 180,833 183,412 Current assets Debtors Cash at bank and in hand 13 8,553 785,371 42,637 801.403 7g3.924 844.040 Creditors: amounts falling due within one year 14 4.732 4,570 Net current assets 789,192 839,470 Total assets less current liabilities 970,025 1,022.882 The funds of the charity Restricted income fvnds Unrostrictgd funds 16 228.310 741,715 323,691 699,191 970,025 1,022,882 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006. for the year ended 31 December 2023. The trustees. acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure. for the financial year in accordance wtth the requirements of sections 394 and 395 and which otheiwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 'IZ J4.Zu Ut The financial statements were approved by the trustees on ................ . Mr S Sweeney Trustee Company registration number 03589593 (England and Vwales) HOPE NOW LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operating activities Cash (absorbed by)Igenerated from operations 18 (48,412) 327,106 Investing activities Purchase of tangible fixed assets Investment income received (688) 33.068 (1,899) 11,026 Net cash generated from investing activities 32,380 9,127 Net cash used in financing activities Net (decreasellincrease in cash and cash equivalents (16.032) 336.233 Cash and cash equivalents at beginning of year 801,403 465,170 Cash and cash equivalents at end of year 785.371 801,403 HOPE NOW LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng policies Charity information Hope Now Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Malvem Centre. Malvern Road, Southampton. Hampshire. S016 6PY. 1.1 Accountlng convention These accounts have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. ('FRS 102.), °Accounting and Reporting by Charities. the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practi￿ as li applies from 1 January 2019. The Charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adcquatc rcsources to continue in operational existence for the foreseeable future. Thus the ttustees Gontinue to adopt the going concem basis of accounting in preparing the accounts. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charÈtable objectives. Restricted funds are subject to specific condttions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statèments. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. 1.4 Income Income is recognised when the charity is legally entitled to it after any perfomiance conditions have been met, the amounts can be measured reliably. and it is probable that income will be received. Cash donations are recognised on receipt. other donations are recognised On￿ the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift ￿d or deeds of covenant is recognised at the time of the donation. Income from donations and grants, including capital grants. is included in incoming resources when these are receivable. except as follows= when donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods: and when donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income. the income is deferred and not included in incoming resources until the pre-conditions for use have been met. Interest receivable.. Interest receivable is included in investment income when it is receivable by the charitable company. 10- HOPE NOW LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng policies {Continued Rental income: Rent is received on a monthly basis and is recognised when due. Intangible income, comprising donated services, is included in incoming resources at a valuation which is an estimate of the financial cost bome by the donor where such a cost is quantifiable and measurable. No income is recognised when there is no financial cost borne by a third party. 1.5 Expenditure Liabilitie8 ar8 racognieed as resource8 expended ag soon a6 there IÈ a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on the accruals basis and includes irrecoverable VAT. Expenditure is allocated to categories either on a direct or a usage basis. Expenditure Ihat is directly attributable to raising fijnds is included in the costs of generating funds. This includes production of the newsletter and ministry. Expenditure attributable to meeting the aims and objectives, including the support costs, is included in charitable activities. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depieutltiuri dnd